Audit Flags ₦118.7 Million Unaccounted Spending At CAC

THE Auditor-General of the Federation has uncovered serious financial irregularities at the Corporate Affairs Commission (CAC), revealing that the agency spent ₦118.75 million in 2022 without any supporting documentation. The finding raises concerns about weak internal controls and questionable spending practices within one of Nigeria’s key regulatory institutions.

The revelations are detailed in an 808-page audit report submitted to the National Assembly, covering January–December 2022. The report highlights multiple breaches of the Financial Regulations (2009), including undocumented expenditures, unaccounted government vehicles, and payments made without required approvals.

According to the audit, the CAC processed payment vouchers totalling ₦118,752,826 without invoices, memos, purchase orders, or other mandatory documents. CAC claimed the funds were largely used to support oversight visits by National Assembly committees, but the Auditor-General dismissed this justification, noting that such spending violates financial rules and creates opportunities for diversion of public funds.

The Auditor-General has directed the Registrar-General to appear before the Public Accounts Committees, recover the funds, remit them to the treasury, and present proof of compliance. Failure to do so could result in sanctions, including recovery from responsible officers and possible removal, under Paragraph 3106 of the regulations.

The audit also found that six CAC vehicles were missing, with five in the custody of the Ministry of Industry, Trade and Investment and one assigned to a Special Assistant. No documentation authorised the transfer. CAC described them as “project vehicles,” but auditors said the explanation lacked merit and recommended their immediate return.

Further, the commission spent ₦123.94 million on external legal services without the required approval from the Attorney-General of the Federation. Regulations mandate instruction letters, court filings, and detailed service reports, none of which were provided. The Auditor-General ruled CAC’s defence inadequate and ordered a full refund to the treasury.

The audit paints a picture of weak accountability, blurred institutional boundaries, and poor compliance with procurement laws. Analysts warn that such lapses diminish public trust and undermine the CAC’s authority as a regulator responsible for enforcing corporate transparency.

The report also raises concerns about the growing trend of government agencies funding lawmakers’ oversight activities — a practice critics say compromises legislative independence and encourages opaque financial dealings.

Overall, the findings point to systemic governance failures that, if unaddressed, risk further weakening Nigeria’s public sector integrity.